Premiums for voluntary car insurance plans under the new structure are calculated based on the following factors:
This is a key factor is determining the premiums. Premiums for cars with low risks are generally lower than those with high risks.
Small cars have lower risks. Thus the premiums are lower.
Prices of spare parts and repair fees differ for each car brand of cars. Cars are divided into five categories and premiums are computed based on prices of each category.
This is another risk factor that is used for computation.
Younger drivers are more reckless and have more accidents than middle-aged drivers.
Premium for insurance policies that identify the driver(s) are lower. The higher is the sum insured, the higher is the premium.
Some accessories such as dumping equipment and hydraulic equipment increase risks, according to information from the Department of Insurance.